Larry Summers Reportedly Backs Scott Bessent, Says Treasury Secretary Right To Question Fed’s Overreach

The former Treasury Secretary said the Fed’s non-monetary activities should be subject to scrutiny by political officials.

Larry Summers on Tuesday reportedly backed Treasury Secretary Scott Bessent on the topic of the Federal Reserve’s “overreach” in the non-monetary activities of the central bank.

In an interview with Bloomberg, the former Treasury Secretary stated that while the Federal Reserve needs to maintain its autonomy regarding monetary policies, the same stance does not apply to its non-monetary activities.

Speaking on this topic, Summers said, “Certainly, the judgments of political officials should influence those things.”

“There’s no basis for the Fed being entirely autonomous and separate in those areas,” he added.

Meanwhile, U.S. equities declined in Tuesday morning trade as investors weighed the impact of the Trump administration reigniting tariff concerns by saying more letters could be sent out before the August 1 deadline.

The SPDR S&P 500 ETF (SPY), which mirrors the S&P 500 index, was down 0.18% at the time of writing, while the Invesco QQQ Trust (QQQ), which mirrors the Nasdaq, was down 0.57%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.

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